NHS Pension

Emmia

Sarah69 said:

I simply cannot afford the contributions it would be over £200 a month. I literally live month to month and can’t afford to save even £50 a month! 

If that's the case, you really need to look at where else you're spending your money... And /or finding ways to get promoted to earn more.

As @joe_crystal points out, you currently have no Ill health early retirement cover - so if you can't work, there's nothing there.

Dazed_and_C0nfused

Sarah69 said:

Hi, 

I’ve worked for the NHS for over 9 years and always opt out of the pension as I can’t afford the monthly amount. So I assume that I will get no pension when I retire. However today I was told by another employee that the NHS still pay into a pension, is anyone able to clarify this please? 

The other employee is wrong.  You won't get any NHS pension.  You will no doubt be accruing qualifying years towards the State Pension.

Notwithstanding the valuable pension you are missing out on you are also paying more tax for the privilege, not very MSE at all 😢

itsthelittlethings

Do you live in the South East? You have my sympathies. Sometimes there are no cutbacks.

JoeCrystal

Sarah69 said:

I simply cannot afford the contributions it would be over £200 a month. I literally live month to month and can’t afford to save even £50 a month! 

It won't be £200 a month, you don't pay income tax on it so assuming you are earning £24k salary, you get £1,733.34 per month if you opted out but £1,629.34 per month if you opted in so it cost you £104 per month. If you are saying it will cost you £200 per month, are you actually on a much higher salary? I am hazarding a guess that you are now on little under £33k then?

itsthelittlethings

Yeah shouldn’t be 200/ month on 24k.

itsthelittlethings

I’d be expecting 60-80. Ask payroll.

Flugelhorn

the NHS pension needs to be considered to be an essential expenditure - cut down on something else before you cut down on that.

My first day in in my first job in the 80s - someone from HR stuck the form in front of me and said "sign here and do not ever leave the scheme - when you are 60 you will be glad you did that" - I did what I was told and when I retired I was very glad I had, even though I paid in some pretty crazy percentages of my salary (and yes I know I know it was before tax..) - used to just not look at the Superann or NI or Tax.. just the bottom line 

Silvertabby

Look at it this way.  You are on track to retire on the full new State pension of (currently) £230 per week.  That is set at just a couple of £s over the Pension Credit means test limit, so you won't be entitled to PC or any of the other means tested benefits that being in receipt of PC opens the door to.  All you'd get (assuming the rules don't change) is a bit of help with your rent and council tax.  Could you really afford to live on that?

12 years or so of an NHS pension will make a huge difference to your life in retirement.  

BrilliantButScary

Have you checked your state pension forecast?

https://www.gov.uk/check-state-pension

How old are you? From your previous posts, I am guessing you are in your 50's. Have you previously paid into a workplace pension?

Pension Credit is the main benefit that people on a low income claim in retirement, but obviously this could change before you get there.

https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/pension-credit/

Do you have adult children that live with you, and are they making a fair contribution to household costs?

Just to say, thank you for your service as an HCA in the NHS. But, is it time to make a change, as you would get paid more at Aldi, as a store assistant.



https://www.nhsemployers.org/articles/pay-scales-202526

https://www.aldirecruitment.co.uk/roles/stores/store-assistant

LightFlare

I was immensely grateful that I didn’t opt out when I took early retirement after 36 years service due do personal/health reasons 

without that, I would have had to work another 11 years untill state pension which I probably wouldn’t have survived

now at least I have options

hard though it might be, find a way to opt back in - you won’t regret it